I understand that great companies are going to remain great. I understand that the economic outlook has not changed. I am 100% bullish on the American economy. However, my fear lies in the fact that great companies can have p.e.s of around 50, which they have historically had, or great companies can have p.e.'s of 200 or 300 or 1000, like they have most recently had in this amazing bull market. That is the question.

For example, everyone knows Ebay is a great company and it will be around forever. Currently its stock price is about 139 and its p.e. is about 1390. What if the market decides to value Ebay at a p.e. of 139, which from a historical perspective would not be cheap, then Ebay would trade at 13.9.

That's where my fear lies--in the high p.e.s, not in the economy--not even in the death of the bull market. I believe the bull market will must resume because the economy is great. It is just that when it resumes, will tech stocks all be trading at p.e.s of 50 or will they be trading at p.e.s of 200 again?

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